Cathay Pacific Haitong: The spin-off of the automotive glass business by Xinyi Glass (00868) will help drive value revaluation and maintain the “gain” rating

The Zhitong Finance App learned that Cathay Pacific Haitong released a research report stating that the net profit forecast for maintaining Xinyi Glass (00868) from 2026 to 2028 is 3,591 billion yuan, 4.193 billion yuan and 4.783 billion yuan, with a target price of HK$17.73 and no change in the “increase” rating; the bank believes that the float glass industry is currently at its bottom, and the company's spin-off of the automotive glass business will help drive value revaluation.

The company announced earlier that it plans to split the automotive glass business and go public independently in Hong Kong. It is expected that it will be carried out through physical distribution. Existing shareholders will hold shares in Xinyi Glass and Xinyi Auto Glass at the same time. After completion, it is expected that Xinyi Glass will retain its float glass and architectural glass business.

The bank believes that the float glass industry is currently at its bottom, and the company's profit advantage is expected to expand in the future. Coupled with stable growth and high gross profit, automotive glass is expected to obtain higher valuations after a spin-off, driving value revaluation.